Which correctly describes the consequences of a contribution of property to a partnership when the property is encumbered by a liability?
a. Overall, the liability increases the partner’s tax basis in the partnership interest.
b. The partnership’s assumption of the liability is treated as a distribution of money by the partnership to the partner.
c. The basis of the associated property to the partnership will be reduced by the amount of the liability.
d. The partner’s overall increase in his or her basis in the partnership will be the basis of the
property minus the liability.